Tree Nuts

Products: Almonds, Brazil, Cashew, Chestnut, Hazelnut, Macadamia, Pecan, Pistachio, Walnut

Synopsis – Australian Industry

Year	Gross value of Prod’n $ ‘000	Exports $ ‘000	Imports $ ‘000	Estimated number of producers
2006-2007	328,867	123,730	157,086

 

The main tree nuts are generally considered to be:  almonds, Brazil nuts, cashews, chestnuts, hazelnuts, macadamias pecans, pistachios and walnuts (though some of these are not true nuts).

Demand for tree nuts is benefiting from increasing consumer perceptions of their healthiness as part of a balanced diet.  Generally tree nuts are valuable protein sources and are high in unsaturated fats and important vitamins and minerals.  Each nut has specific nutritional characteristics that are being used by marketers to boost demand.  In Australia, the tree nut industry has established a website ‘Nuts for Life’ (www.nutsforlife.com.au) to provide information to consumers about the nutritional and health benefits of tree nuts.

The estimated gross value of the Australian tree nut industry in 2006 was $550 million, of which macadamias made up around 75 per cent and almonds 20 per cent.

Average annual value of Australian tree nut exports was $173 million in the four years to 2006-07, compared to imports of $174 million.  Australia is a net exporter of macadamias, almonds and pecans but net importers of other tree nuts.

Background

World imports of tree nuts averaged US$5.8 billion a year in the four years to 2005, of which almonds and cashews comprised nearly half.

The main exporter of tree nuts is the United States, with Turkey, India and Iran being the other major players.  Australia accounts for only around 1.5 per cent of the total value of world trade, but is the largest exporter of macadamias.

Almonds

 

The almond tree (Prunus dulcis) is a deciduous tree that originated in south west Asia.  It is pollinated by bees and produces a fruit consisting of a leathery hull that covers a hard shell containing the almond nut.
Mechanical tree shakers separate the fruit from the tree.  The fruit is allowed to dry on the ground and then is swept up by machines.  Processing separates the hull, shell and nut.  The nut is eaten directly in raw, smoked or blanched form, or is used in a wide range of bakery and confectionary products.  The hull is a valuable animal feed and the shell is valued in uses such as garden mulch or animal beds.

The main almond producing areas of Australia are located in the Adelaide, Riverland (South Australia), Sunraysia (Victoria) and Riverina (New South Wales) areas of Australia.  Almonds are harvested in Australia from late February to May.  The Australian almond industry has advantages over the northern hemisphere of the opposite production season and freedom from many of the diseases and pests affecting other regions in the world.

In 2007, the total Australian area of almonds was 25,965 hectares, consisting of 10,916 hectares of bearing trees and 15,050 hectares of non-bearing (recently planted) trees.  The 2006-07 Australian almond harvest is estimated to have been around 26 555 tonnes (kernel).  There have been large plantings of almonds in recent years, particularly in Victoria.  Australian almond production is projected to reach 46 700 tonnes (kernel) by 2008 and 77 000 tonnes by 2015.

Background

The world almond market is dominated by the United States (mainly California) which accounts for around 45 per cent of world production and more than 70 per cent of world trade.  World demand for almonds is growing strongly due to rapidly growing incomes in traditional consuming countries, such as India and China, and increasing health consciousness in high income countries.  The strong demand has meant a steady increase in world trade and higher almond prices in recent years. Almonds are dependent on honey bees for pollination.  In the United States, Colony Collapse Disorder (CCD) is reducing bee populations in some regions.  There are concerns that in future years there will not be enough bees in the United States to enable optimal pollination of almond orchards. The Almond Board of Australia is the peak industry body. Compulsory levies are raised to fund research and development through Horticulture Australia. 

Links

• Almond Board of Australia (www.aussiealmonds.com) provides statistics on almond plantings and production.
• Almond Board of California Almond Board of California (www.almondboard.com) publishes an almanac that provides comprehensive statistics on Californian and world almond industries.

Cashews

The cashew tree (Anacardium occidentale) is native to the tropical region of north eastern Brazil.  It produces a pseudofruit called the cashew apple from the bottom of which protrudes the true fruit that is usually kidney shaped.  Within the true fruit is a shell containing a single seed that is the cashew nut.  The shell contains highly toxic liquid that has a number of industrial uses including resin manufacture.  The cashew apple is edible but its highly perishable nature means it is often discarded after the nut is removed.  The shelling process with cashews is largely a manual one so cashews are processed in countries with low labour costs.

The Australian cashew industry is located in the Mareeba region of tropical Queensland and in the Northern Territory.  The Queensland industry consists of one large plantation with 48 000 trees that has been established since 1988.  There is a large plantation in the Northern Territory with existing plantings of 100 000 trees (50 currently bearing fruit) and plans to increase to 250 000 trees.

Australian production in 2005-06 was only 114 tonnes, substantially below the existing production potential of around 300 tonnes.  After some initial early stage processing, Australian cashews are exported for further processing; there is no facility for shelling cashews in Australia.  Virtually all unshelled Australian cashews are exported to Vietnam and then returned to Australia for sale as value added product.  The main export destinations for shelled Australian cashews are New Zealand (49 per cent of total Australian exports in the three years to 2006-07), Canada (27 per cent), Spain (11 per cent) and the United States (11 per cent).

Background

The main producers of cashews are Vietnam and India, along with other countries in the tropics.  India is the main importer of cashews in shell, which are processed then exported to wealthy countries.  World trade in both unshelled and shelled cashews has grown strongly over the last decade.  Import prices for unshelled cashews are much lower in recent years in constant dollar terms than ten years ago but have improved substantially for shelled cashews. Australia imported cashews worth $81 million in 2006-07, mainly from Vietnam (87 per cent of total imports in the three years to 2006-07) and India (10 per cent). A wide range of land in Australia has been identified as suitable for cashew production.  The plans for expansion of the industry and the maturing of existing plantings suggest Australian production of cashews (in-shell) of as much as 3000 tonnes by 2011-12.  However, lack of processing facilities in Australia is a major impediment to the profitability of cashew production under Australian conditions and the current industry expectation of future production levels will be difficult to realise.

Links

• US Department of Agriculture’s PSD Online database (www.fas.usda.gov/psdonline/), providing time series data on production, supply and distribution of macadamia nuts (in-shell basis), by key producing country.
• The ‘Cashews’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 386–401 (https://rirdc.infoservices.com.au/items/04-125).

Chestnuts

 

There are four main varieties of chestnut: European chestnut (Castanea sativa), Chinese chestnut (Castanea mollissima), Japanese chestnut (Castanea crenata) and American Chestnut (Castanea dentata).  Unlike other nuts, chestnuts contain virtually no oil. The composition is roughly 50 per cent carbohydrate, 5–10 per cent protein, with the bulk of the remainder water.  Chestnuts are a traditional source of carbohydrate in Europe and Asia.  The European chestnut is the most common chestnut variety in Australia. 

There are approximately 340 chestnut growers in Australia, with around 75 per cent of production occurring in the north east region of Victoria. Estimated Australian chestnut production in 2006-07 was 413 tonnes with a gross value of nearly $913 000.  This was less than half the production level of the previous year due to drought and frost.  Australian chestnut production could be as high as 2000 tonnes by 2009-10, with annual exports of 120 tonnes.

Background

The main producer of chestnuts is China and it is also the main exporter. World import prices have fluctuated around US$2500 a tonne in constant (2008) dollar terms over the last decade.  Australian exports small quantities of chestnuts, mainly to China (97 per cent of total Australian exports in the three years to 2006-07).

  Links

• US Department of Agriculture’s PSD Online database (www.fas.usda.gov/psdonline/) providing time series data on production, supply and distribution of chestnuts, by key producing country.
• Chestnuts Australia Inc. (www.chestnutsaustralia.com.au), a range of information, including an industry newsletter.

Hazelnuts

 

Hazelnuts are produced from trees from the species of Corylus.  The main source of hazelnuts is the common hazel (Corylus avellana) that is native to Europe and Asia.  Hazelnut production is suited to regions with well drained soils, mild winters and cool summers, with yields being susceptible to environmental stresses.  Hazelnuts are consumed directly as a snackfood or used in a range of bakery and confectionary products. 

Australia is a very small producer of hazelnuts, with total plantings in 2006-07 of 55 000 trees on 30 hectares.  Production in 2006-07 was an estimated 27 tonnes on an in-shell basis.  Australian imports mainly shelled hazelnuts with an annual average value in the three years to 2006-07 of $21.5 million.  More than 90 per cent of Australia’s hazelnut imports in the three years to 2005 came from Turkey, with the remainder from the United States.

Background

Turkey typically accounts for two-thirds of world production and is also the main exporter.  European countries are the main importers.  World hazelnut prices have increased sharply in recent years due to production shortfalls in key producing countries.  However, there are signs of recovery in world production.

Links

• Hazelnut Growers of Australia (www.hazelnuts.org.au), the peak industry body providing a newsletter.
• The ‘Hazelnut’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 393–401 (https://rirdc.infoservices.com.au/items/04-125).

Macadamias

 

The macadamia nut is a high quality nut from tree species (almost completely Macadamia integrifolia but also Macadamia tetraphylla) that are native to Australia.  Macadamia trees grow best in fertile, well-drained soils in high rainfall subtropical areas that are frost-free. 

Australia is the main producer and exporter of macadamia nuts, but there is now extensive production in other countries in the world.  Increased supplies from these competing countries have put downward pressure on world price in recent years.

Total plantings of macadamia trees in Australia in 2006-07 were around 15 000 hectares, 95 per cent of which are in northern New South Wales and southern and central Queensland.  This includes 3,750 hectares of tree that are yet to produce commercially.

Macadamia production in 2006-07 was estimated to be 41 000 tonnes on an in-shell basis, with a gross value of nearly $114 million.  With only around half of current macadamia plantings in Australia at the maximum bearing stage, substantial increases in Australian macadamia production are expected over the next five years. 

Australian exports more than three quarters of its total macadamia production. The main export destinations for Australian macadamia nut are Japan, the United States and countries in Europe.

Links

• US Department of Agriculture’s PSD Online database (www.fas.usda.gov/psdonline/), time series data on production, supply and distribution of macadamia nuts (in-shell basis), by key producing country.
• Australian Macadamias Society (www.macadamias.org), information on the Australian and world macadamia nut markets.

Pecan nuts

 

The pecan tree (Carya illinoinensis) is native to the south eastern region of North America. Commercial plantings include native/seedling varieties and varieties that have been improved through selective breeding and grafting.  The improved varieties are higher yielding and produce better quality nuts that earn higher prices.  Maximum yields are not achieved until trees are 12–15 years old.

There were around 200 growers of pecan nuts in Australia in 2005-06, with 187,000 trees. Australian production of pecan nuts in 2005-06 was an estimated 2,697 tonnes on an in-shell basis, more than 95 per cent of which came from New South Wales, with small amounts also from Queensland and Western Australia.

Stahmann Farms is the largest pecan nut producer in Australia (www.stahmannfarms.com.au), accounting for up to 90 per cent of Australian production in the past but this share has been falling as new producers enter the industry.

Background

The main producer of pecans is the United States, with Mexico as the second largest producer.  There are strong ‘on’ and ‘off’ seasons with production in the United States.  Around three quarters of US production comes from the improved varieties. The United States is now a net importer of pecan nuts, sourced mainly from Mexico but also from Australia.

Links

• US Department of Agriculture’s PSD Online database (www.fas.usda.gov/psdonline/), provides time series data on production, supply and distribution of pecan nuts (in-shell basis), for the United States and Mexico only.

Pistachios

 

The pistachio tree (Pistacia vera) is a desert tree, suited to regions with very hot summers, very cold winters and well drained soil. It is native to the mountainous regions of central and south western Asia, including parts of Turkmenistan, Iran and Afghanistan.  Pistachios are processed to remove the fleshy pink outer hull, then usually heated to encourage splitting of the shell.

The Australian pistachio industry consists of around 30 growers with a combined total of 650 hectares of pistachio tree plantings.  The pistachio orchards are mainly located on the Murray River but there are also orchards as far north as Tamworth and in Western Australia. 

Background

The main producers of pistachios are Iran and the United States and these countries are also the main exporters.  There is steadily growing world production and trade of pistachios and improving prices in recent years.  Australia imported 1360 tonnes of pistachios in 2006-07, worth $10.5 million.  Imports were mainly sourced from the United States and Iran. In the three years to 2006-07, more than 90 per cent of Australia pistachio exports went to China and Hong Kong. 
High prices for pistachios in recent years is likely to see additional plantings of around 100 hectares in Australia in 2008.  With existing trees, Australia has the ability to produce around 2000 tonnes of pistachios a year by 2001-12.

Links

• Pistachio Growers Association of Australia (www.pgai.com.au)
• California Pistachio Board (www.californiapistachioboard.org)

Walnuts

 

Walnut trees require a climate with a winter chill period to benefit flowering; freedom from frosts during flowering; and a summer that is warm but not excessively hot.  The common English or Persian walnut (Juglans regia L.) is the main species in walnut production but the Northern Californian Black walnut (Juglans hindsii) and the Eastern Black walnut (Juglans nigra) are popular as rootstocks for grafted trees because of their increased vigour. 

Like almonds, there has been a massive expansion in walnut plantings in Australia in recent years. The advantages that Australia has in walnut production are being able to supply fresh walnuts in the northern hemisphere off season and being relatively free from many of the diseases that affect other walnut producing countries.  Until the recent plantings, most of Australia’s walnut production was in Tasmania, but now the bulk of future production will take place in New South Wales and Victoria.  South Australia and Western Australia are also small producers of walnuts.

Australian planting of walnut trees has expanded rapidly in recent years to 2,268 hectares.  Most of the increase occurred in the Riverina area and was undertaken by two large companies.  To accommodate the expected increased production, new processing plants have been built at Violet Town and Koraleigh in Victoria.

Australian walnut production in 2006-07 was an estimated 1,300 tonnes on an in-shell basis with a gross value of $5.6 million.

Background

Nearly half of world production of walnuts is contributed by China and the United States, with countries bordering the Mediterranean Sea also important producers.  The value of world trade in walnuts (in shell and shelled) averaged more than $550 million a year in the four years to 2005.  The United States is the dominant exporter.  There are countries, such as the Republic of Moldova, that import unshelled walnuts and re-export them as shelled walnut.  Almost all walnut production in the United States comes from California with 5,500 walnut growers and 45 walnut handlers making up the industry. 
Australian exports small quantities of walnuts but imported walnuts worth over $29 million in 2006-07 (equivalent to 8000 tonnes of walnuts on an in-shell basis).  Australian imports of walnuts are largely sourced from the United States.  The increase in Australian production and imports in recent years suggest rapidly growing domestic consumption of walnuts.

  Links

• Australian Walnut Industry Association (www.walnut.net.au).
• California Walnuts (www.walnuts.org), information on the Californian walnut industry, including a regular newsletter Walnut News that provides an export market update.